>> he says of course it could be embarrassing to have these revelations get out, especially for the women. i think other ceos shouldn't make jokes. he's a professional. >> market is in positive territory despite the jobs number this morning. more signs of resiliency? maybe sold it off yesterday, buying it back a little bit today which i think is impressive. >> and the ten-year note has risen a bit. we had a bottom yesterday of around 3.17% in terms of the yield. it's now 3.21%. they have been selling those treasuries. >> the dollar is starting to recover a little bit as well. not as much as some traders thought it would given the move we've seen in the treasury market. >> big guest on monday. >> sally crawcheck will join us. she's reportedly in the running. she's bank of america's global wealth and investment management president. she will join us monday on "power lunch." >> that's it for now. we'll see you on monday.

"street signs" with steve liesman begins in 30 seconds. re ceo will host the 2016 summer olympics. bank of america will pay $713 million to the government in preferred dividends under the t.a.r.p. program that. latest dividend is payable next month. td bank says its computer systems are now all up and running after several days of glitches that resulted in delays in posting transactions. that's cnbc.com news now. first in business worldwide. i'm bertha coombs. ♪ when my baby cries at me i go to rio ♪ >> i'm steve liesman in for erin burnett. only one question on the street today. has the recovery stalled or just take an breather. a week of lukewarm to bad economic data. many are wondering the recovery will be out of it.

brian roberts may finally get his revenge after being rebuffed by disney. he may soon be proud as a peacock. let's get right to the trading as far as. bob and mike. hey, bob, on further review, maybe it wasn't that bad a jobs report. what's going on? >> well, i think the key point here is the dollar moves now the stock market, and every day traders down here for the last three months watch the dollar on their screens. that's a big change. they didn't used to be that obsessed about it. the bottom line is this, when the report came out there was a brief blip up on the dollar. that's the flight to safety crowd, but the crowd that's concerned about the macroeconomic situation quickly sold the dollar and, of course, that is stock positive and has been for months now. it's the surest trade for the quarter quarter. bottom line we saw a nice lift right about 9:45, 10:00, started to tent the bottom and we started moving up aggressively as the dollar moved to the downside. if you look at the initial stocks like coca-cola, the

safety stocks, the defensive stocks, they all did very well. very quickly, jpmorgan, all the big financial names rallied off the bottom. then all the big materials names, the commodity stocks rallysed a well. the important story is the market is holding their levels that they have seen just a couple days ago. down about 5%. finally, i just want to note for all the people interested in brazil. we did see a very brief move up in brazil in the brazilian etf, but they actually sold into that, steve, very interestingly. that stock is near a 52-week high. finally talk about next week. the important thing going on, retail sales. that, if it's positive, steve, will definitely quiet some of the bears. tradertalk.cnbc.com. mike huckman, still on the downside a little on the nasdaq but also briefly went positive earlier in the day. >> we're still on kind of a roller coaster ride at the nasdaq although it looks like we're on that flat portion of the track. but considering the negative jobs report as well as the 3% hit that the nasdaq took

yesterday, it could be worse. especially if there weren't a handful of analysts' upgrades of some big stocks. ubs upping apple to a buy raising the price target by 95 bucks to $265. an upgrate of intel as well out of oppenheimer. an upgrade of costco. all three stocks up nicely. no normal upgrade here, but we have the analysts raising revenue and earnings estimates and the price target on first solar. that stock is up 4.5%, a nice . $6.50 move right there. the only upgrade not working is the one on comcast. raised the price target range from $19 to $21 and said, steve, that the -- at least for comcast, an nbc universal deal makes good strategic sense. follow me on twitter, huckman to

liesman. >> thanks, mike. the jobs number out today showing unemployment rose to 9.8%. does that mean the recovery has stalled? join us to talk about the issue, our own all-stars linda barrington and david kotok, chief investment officer and cnbc contributor. linda, let me start with you. how grim was this report in your opinion? >> well, we were certainly disappointed, but not surprised. it's quite in line with the forecast we've had for unemployment for the third quarter and what we're proje projecting for the fourth quarter. labor markets absolutely lagged the rest of the economy, so the good economic news in the third quarter is not really inconsistent with what we're seeing. >> wouldn't we by now at least have expected some sequential improvement in job losses if not job gains? >> the trend is still improving. it's certainly -- >> it's hard to see, linda, from the numbers today. i did a little squinting there and i didn't see any improvement there. >> you're certainly seeing a downward trend in the job losses

over the last six months. we are always slow in the labor market, and we have a lot of slack to pick up, but this is just a lot of bumpy indecision which is an improvement over what we did have, which was decidedly worsening. so we've made a moderate shift towards the positive here. >> david, it looks like the market looked at the videotape on this one and reversed the call and came up with a different idea of what was maybe wrong or maybe good about this report. >> well, the report was -- >> we're inbounds on the catch. >> the report was less worse. that's not recovery. we lost jobs. we didn't gain any jobs, and we saw a drop of a half a million in the labor force, which says more discouraged folks not looking for work. unemployment rate went up as it would in the end of a cycle, but it didn't do it with a rising number of entrance in the labor force looking for work. that's what make this is report so serious.

what that did for the markets is say -- >> what is this chart? under employment. >> the underemployment rate which is another measure. >> so this is discouraged workers, people -- >> and the unemployment. >> this is 17% of those considered part of the labor force. >> yes. that is one out of every six americans are in that -- >> now you're in the six degrees of separation. if you don't know somebody directly, you know somebody who has had employment problems out there for almost every american, which is pretty serious. >> it is serious. and we're seeing it in the numbers that we give in our consumer confidence index, too. one of the questions we ask, are jobs hard to get. people know jobs are hard, but if you try to smooth out a little bit of the bumpiness we've seen in the last couple months, it's still flat. it's not creeping down and dropping. >> let's stick with the theme we started with. does this tell you the recovery

took a breather? there's been other data, the durables was not as good as expected. some of the existing home sales data not as good. are we taking a breather or stalling out on the way back up? >> i don't think we're stalling out. i think consumers need to feel more confident about the current situation. right now they're confident about the future, the future expectations is jumping up a lot in our consumer confidence numbers, but current expectations, not so good. we certainly have to feel better about the numbers before we will see the household spending jump up enough. >> a question for me is you don't know a "v" versus a "w" when you're in the first leg up in the "v," and does this report suggest that the risk of the second leg, the "w" portion, is rising? we can't be clear on that. >> we can't, and that's the mystery of this all, right? so i think that it's not a good sign in terms of giving us greater confidence that we're in

a "v," but we certainly can't make the call on the "w" yet. >> david, what about the stock market here? do you feel like -- i mean, we went down below 9500 and we didn't like it there. we came back up, and i think you can make an argument that we had been in a range and maybe now this is a new bottom. >> we did a little buying in the sell-off this morning. >> did you buy in rio? >> we're overweight in brazil already. we did a little of that today. separating gdp and labor and the economic issues for us, what this report does is it says the fed will stay near zero another number of months. the worry about quantitative easing and exit strategy is deferred. that's why the bond market liked this. >> pushing ahead of the time -- >> more liquidity. >> we have retail sales, other labor indicators you feel like

it would confirm your sense that it's not time to write the epitaph of the recovery. >> the one we're waiting for is our own employment friends tren which comes out on 3407monday. that's one we feel good about in terms of it giving us a signal. we'll be watching that one carefully on monday. >> how will you -- i'm a little frustrated here to be honest. every week i spent six years in russia covering an economy that was constantly in the mud, a terrible economy. you just get to a point where 550, 550, 550. oh, 530, back to 550 again. you get a little frustrated again. what would you be looking for in claims that would tell you that payrolls are on a track towards growth? >> i think we just need to see more than this up and down up and down. with he need to see several months where we're really seeing solid iment prprovement before w that's kicking in. but it's going to take a few months and we have to keep

watching each month to see if we're on the upward trend. >> thanks very much to linda and david who i think is coming back. up next on "street signs," rio gets the olympic nod, and chicago remains at least for now the second city. we've got the story and the stock play. you are watching "street signs" on cnbc, first in business worldwide. ♪ and when she sighs, she really shows you all she can ♪ welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband.

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check out a few stocks riding the olympic wave here. itau unibanco. ♪ when south american upset, rio winning the bid to host the 2016 olympic games. chicago, a huge disappointment. the second city coming in fourth. it's a big loss for the u.s. but a big win for the "b" in bric and possibly for investors. we have a report of olympian proportions. darren rovell is in chicago. ross westgate is in copenhagen where the announcement came down about an hour ago. we begin with ross. ross, why did chicago lose? >> steve, it wasn't because they didn't have a good bid. all the bids were technically

great, but rio sold itself i think on its passion and the fact that they'd never had it before. a short while ago in the press conference you saw the passion from the president in floods of tears. they have been so passionately committed to it. they said three times in their presentation how the olympics had never been to south america and the number of times had been to europe from the united states, north america, and asia, and it was their turn. they had to back that passion up though, of course, with the economic arguments and the central bank governor has been very important in saying we had budget deficits under control, inflation sunday control. we have the reserves. if you take a look at the voting, you see what happened, steve. rio became the city of choice. if it wasn't your first choice it was your second choice. they picked up all the votes from chicago. they picked up all the votes from tokyo.

why didn't chicago get votes in the first round, one theory, there's been a spat between a euro centric ioc and the u.s. olympic movement over media distribution. the u.s. creams off over $5$50 million. was that part of it? we'll have to discuss that further. it was really the dell gts on t the second vote were sold on the passion of a rio bid. >> let's go to darren rovell in chicago. can you pick up on this thing ross was talking about that maybe the american tv rights are too pricey is maybe what he's saying? >> basically what happened is from the spat was comcast and the usoc, they decided to have a channel and the ioc really didn't like that. the channel came out of nowhere and, therefore, that spat might have contributed to a little bit more tension. he also referenced the fact the

europeans, they have 46 ioc members out of the 106. i want to get into a little bit beyond the math and to rio de janeiro and going ahead. let's talk a little about their challenges. we'll start with infrastructure. they have to build more than half of the stadium seating and so they're obviously committed to that, but that's a lot of seats. also, the metro system does not link to the city center. that's one of the issues. obviously transportation is a big issue, getting people around. the number of people around when you're not used to it. crime in rio de janeiro, brazil, always been associated. they have 33 deaths per 100,000 people, homicide rate the highest of all bid cities. also pollution, that was an issue in beijing but didn't stop them. the government is committed to ridding the cost line of pollution. they'll spend $4 billion to clean things up. another big question we've been talking about is going to be how this all affects u.s. tv rights

not having chicago. it will add up to about $150 million less in negotiations for the 14 and 16 games according to what dick ebersol told us in "power lunch." one positive, of course, is the fact that we're talking about only an hour later from eastern time which will allow the u.s. -- whoever the carrier is to show a lot of the games live. >> a couple questions. i don't know if you're able to answer these about chicago. was chicago ruled out for infrastructure reasons? is it thought of not a reasonable place to hold the olympics or would it tistill ben the running for future olympics? the second question is how normal is it for a country -- a city to come in, make the top four, and then win it in another year? >> i'll answer your -- i think first let me answer the chicago in general. it was not seen as impossible, though there was some questions about the -- general questions about putting it all in the city

center, almost as if chicago is too big already. but that was not really a concern, that it could be done, and, in fact, it was going to be done economically since a lot of it was built and a lot of it would be used. coming back has been done plenty of times before. i think it's going to be up to chicago, and i think it's also going to be up to the relationship as we said with that may played a role as well. thank you very much. will the olympics prove to be a boom or a bust for the economy? that is the birthplace of self. here now to discuss how to trade the rio de janeiro 2016 games, jim iuorio and david riedel, riedel research group president and founder. so, david, do you play this just because they won? are there going to be dollars flowing in? is this something that's a boom

for the country and raises, i don't know, the pe for the country? >> it's a great boom for the country and really explains that brazil has arrived. they have the resources, a diverse, domestic economy that's been sadly ignored by international investors too focused on iron ore, too focused on petrobras and ignoring this huge pool of consumers and that's what the olympics will bring to the world. it's hugely positive for brazil and takes them to another level an individual investor radar screen. >> when i look at the vital signs of the country, the current account stuff doesn't look bad, the unemployment rate didn't suffer too badly. i know the central banker's held in wide regard there. the vital signs of the country, the currency's done reasonably well, but you don't like it at all, jim? >> no actually, as a long-term play, i do like it. i'm long the ewz in my longer-term portfolio -- >> what's the ewz? tell people what that is. >> it's the brazilian etf. >> thank you. >> a mixture of pbrs in it.

you know how fond i am of money. i feel guilty, it's like blood money to me, the fact that i'm making money on the fact that chicago didn't get it, but to me, i think that's all part of it. i think brazil is moving in the right direction and this is a good push for them. and i think by the time this event comes around, we'll no longer be saying emerging markets when we say brazil, because they seem to have a lot of momentum. as for the plays today, the fact that the etf's up 1.5%, to me, it seems like it's overdone on a short-term basis, because in chicago, we thought it was a two-horse race between chicago and brazil. i'm sure a lot of people thought brazil's chances were excellent for all the reasons we just said. so seems like a lot of that should have been baked in, and the people flocking to this now seem to be a little reactionary. i think there are better times to get into the etf than right at this instant. >> so, david, jim shows us how to play, i guess, brazil in a general way, buy the etf. take us further out. there are as you say a bunch of basic big-cap companies that all the foreigners tend to own in

brazil. what's a better way to play the country? >> i think the etf is the worst way to play brazil. u a big slug of iron ore and oil. it's a great accumulation of cellular phone subscribers, great users of banking services. there's a lot of great ways to play brazil. the etf is the worst one you could choose. >> you see -- >> go ahead, jim. >> i've agreed with many things david said and let me tell you why the etf is a for way to play it, because you've got to think domestically now and think how our government is dead set on destroying the dollar, in which case, you want to be in commodities, you want to be outside the u.s. so, that's why i flocked to brazil in the first place and i think that trade is still intact, the commodity trade, the value other than the u.s. dollar. >> i couldn't agree more. >> your ball, okay. >> i think it's going down and going down hard, but you can buy commodities in a lot of ways, you don't have to buy them in

brazil. >> but brazil -- >> in buying the commodity story in brazil, we read in the paper about the big oil finds there, and increasingly, they're less of a commodity importer, even though i think they're still only a net importer on that score. >> there's a lot of great things coming out of brazil. i think that you're going to have a lot of noise around that you're going into a presidential election here. this ends next october, so you're going to have a lot of noise around populism about how those revenue-sharing agreements are structured on those new oil finds. i think investors need to realize that emerging markets are not just a source of cheap labor and a source of cheap raw material. they're a great dynamic domestic economy. that's where you should look. >> jim, last word. >> no, i just -- i agree with almost everything he said. i didn't like the commodity part, but everything else, we're 80% on the same page. i think brazil is the place to be and it's got the momentum going forward. >> don't be an olympic type -- >> don't buy the olympic hype, but wait. >> but it's a good long-term play. thank you, jim and david. >> thank you. >> coming up, "street signs," back after the break.

check out cit, the big winner on the s&p today. they say they're restructuring.

how about an investment with high yield that's as safe as a bond? well, what about bonds? they've been pretty high yielding in their returns. joining us again to talk bonds, david cotak, and also joining us from chicago, our own rick santelli. rick, so, the price of the ten-year bond, going back here turn of the year, 12/31/08, $112.05 and now i have $113 and a little change on top of that. what kind of return is that? >> well, i haven't done the reinvested coupon payments -- >> right, right. >> -- and the principal appreciation, but i'll tell you this -- >> you could do that in your sleep, rick. >> the notion that we're going to have a year that isn't going to be as good as last year's 13% for the ten-year is a lay-up, but i think that we are going to have a positive return, and that is significant, considering that we positively have record deficits showing up. it's an unusual conundrum that

probably isn't going to end well, and it's something that is very hard to handicap. to watch treasuries yields go down, to watch the dollar go up and stocks get hit on the knee-jerk reaction to that number today is an assortment of very strange relationships. >> rick, a man that has so much faith in market, what you're saying here is that even though we know it walks like a duck, as in they're going to be issuing a lot of deficits, it quacks like a duck, as in the bond market is really oversaturated with supply right now and they're going for a weak dollar. they can't tell you it's a duck, right? that they're not going to get out of the way of this, even though they know all of the information that's going to happen here. >> well, and that's what makes the markets always so tough to trade. it isn't easy to do, but you know, i've said it a million times, i don't want to be a broken cd here, but in the end, trying to handicap the government's behavior, whether it's the treasury, the current administration or the fed,

doesn't make it any easier. and the way i'm going to wrap this up from my end, steve, is when i bring my car into a mechanic, i don't want to hear the word faith ever mentioned. it was three economists on our channel today after they covered the jobs number -- >> right. >> -- that said "have faith." >> that things are going to get better. >> to me -- that summarizes it. i would never use a money manager or listen to an economist ever that uses the word faith in anything they tell me about the markt. >> let's talk to a guy with money under management here. david, would you have expected these kinds of returns in the bond market? we were at 4%, now 3.20, we were down as low as 3 in the single digits. >> we have had a rally in the treasury bonds, and you get it when you have lots of weakness, prolonged outlook before you get quantitative easing removed, and you have a weak economy. weak economies are good for bonds. we've also had a terrific spread narrowing trade. so, while you've had treasuries perform very well, you've had

other bonds narrow their spreads to the treasuries and perform even better. >> all right, but rick says this is going to end badly. >> it's going to end. it's going to end some time, and when it ends some time and the rates go up, if you're still in it, your bond crisis are goipri to go down. >> so, everyone says, why would you own a bond at 3.50 when it's definitely going to 4? well, it's definitely going to 3.20. there's still money to be made here? >> we sold the treasury bonds and bought the spread product because they're even better. and you got numbers today which said that this is a prolonged period of very slow pressure on financial markets because of the big unemployment report and other indicators you mentioned earlier. and those are still at work. >> rick, help me out here a little bit on how the market is thinking about the fed. if they say we're going to act sooner, faster, stronger than

maybe you think, that could be good for the dollar, it could be good for inflation, it could be good for bonds. on the other hand, when the fed says extended period, i think the fed may be winning on both sides of this rhetorical equation here, rick. >> yeah, you know, whether it's fortunate or unfortunate, i think the microphone will have a greater effect for a longer period of time in the fed's hands, in the fed speaker's hands, because it's such a unique relationship between all these government agencies and what's going on with the markets, unlike in other areas where the mike kind of loses its potency. this is going to be a big issue moving forward, and i think there's going to be a lot of descension among the reigns of the fed voters, but i think i agree with mr. gross this morning. i don't think that you're going to see a liquidity removal until you see employment make a move. and obviously, we all know there is the "l" word in front of employment -- lagging. >> right. >> but my neighbor, lag isn't

the word he used. >> rick, i have a question for you. we had bill gross on this morning and he talked about the dollar and i've cut this bite specifically for you, my friend. >> one of the ways that a country gets out from under, you know, a debt burden, is to devalue, you know, that happened in the 1930s. countries selectively devalued one by one. the united states was a little late, but when they did, they came out of the depression. and so, yes, i think policymakers really want a weak dollar, because that basically means their manufactured exports become more competitive and the country begins to add jobs. >> there it is, rick. the world's largest bond fund manager acknowledging the united states is in the process of devaluing the dollar to digits way out of the hole here, and he's still buying bonds. what's your take? >> well, i think everything he says is true, and i think that the market's movement of late is evident that that relationship can be ongoing. i think there's one thing that changed yesterday, steve.

i think the congressional interest in the currency -- >> yeah, i agree. >> -- the orphan currency, means the public at large, you the viewers, understand it isn't necessarily in your best interests that your paycheck is given to you in dollars that get weaker and weaker, even though all the business leaders may have a different vantage point in this equation. >> thanks. i want to get david on the devaluing dollar. >> you can devalue the dollar against the euro, rick, but if the chinese continue to take those dollars and they've got 50 million people who are employed making stuff to sell to us and the rest of the world -- >> with a currency that's pegged to the dollar. >> -- with a currency that's pegged to the dollar, then this can go on for a long time. and there are huge sources of funding for the dollar liabilities. as long as they're in place, we could have a prolonged period of time. >> that's really interesting. rick, how about that? >> i completely agree. >> our foreign policy -- here, china, eat this devalued dollar. >> i completely agree.

i like the relationship that i can have cameras, i can buy tvs and we give them paper, lumber futures aside. but in the end, i still, as an american, i just don't think it's a great thing. >> understood. rick, thank you very much. david, thank you very much. getting ready to stop trading, jim cramer is in the house with the trades to take you into the weekend. and if nbc and comcast merge, who will be the winners and losers? "street signs" back in just a moment. traders learn from the pros. say you want to backtest an entire portfolio of stocks. market experts show you how through fidelity's extensive trading knowledge center. and fidelity gives you free research from 15 independent firms, with accuracy scores... to help you decide which analysts to trust. find out why more and more active traders are turning to fidelity for a smarter way to trade online.

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is it time to stop trading because the man is in the house. how are you, my man? >> how are you? >> this is the best part of the show. >> i hope so. >> first of all, did you take on the jobs number? how bad? >> it just wasn't a good number. look, i'm looking for -- i mean, fortunately, goldman told us in advance. >> pretty good called. >> it's really good, but -- >> damned if you do, damned if you don't, because now it looks like they have insider information like everybody believes. >> there was at one time, when they decided to get rid of the 30-year, there was an insider case. >> it's true. >> nice guy, guy from my neighborhood. and you know, you never -- i

don't think they knew. i think they're real good. but obviously, goldman is on the hot seat, you know someone from "rolling stone" will say -- and not only that, they know the person who keeps these numbers. >> my take on that was i can't believe the street didn't take it down more -- they took the number up towards 175, they started at 200. they should have been going the other way. there's all kinds of stuff. i think there was a trade you could have had. >> i think you're very right. and i think that one of the things that really has caused this market to go haywire is that the predictions got way too positive. just like when we raised numbers too much for stocks like going into the collapse last year. >> right. >> and the only reason the stocks have kind of had a nice lift is the numbers got so low that you could beat them. and now i think with this employment number, you begin to worry whether the numbers have come down. >> the further out you go on the limb, the more hand-holding you need, and when you start to go out further in valuations -- >> right. >> -- and you don't get the support from the economy, then you start to pull back. is 95 the bottom here, jim, or is it a new bottom, do you feel like? >> no, no.

you know, i've got to tell you, you've got to peel open the makeup of things here, because yes, if you own mcdonald's and yes if you own walmart and yes if you own pepsi and no if you own illinois tours or p&c financial -- this is a very bifurcated market. it's giving you the wrong signals. a lot of people said, that number's not so bad, the action is good. well, look at where the action is. >> okay, let's get there now. >> i mean, are people taking up the big, heavy industrials today? i don't think so. >> no. >> that's not what's happening. but you know, people look at the action, they say, wow, you know, look at this. mcdonald's is doing well. well, let me know when mcdonald's is doing well, darden sells off. now, darden's holding in today, but it was down 10% this week. >> and apple and google? >> well, they're secular great stories. people keep rising the price target. we did a show with apple cart, saying listen, you'll be able to change the accounting for the iphone. the iphone is doing really well, taking a lot of share away from research in motion and the dumb

phones, being downgraded. that's a good one. new surveys show that bing has peaked and google's starting to take back share. my understanding is google and apple will have substantially better-than-expected earnings, but those are coming in place of other. those are not employment plays. >> what about the walmart? that's back into -- >> fabulous interview today. >> okay. >> fabulous in the "journal," just fabulous with the ceo. and if you read that, you really get a sense of what's going on with the employment number, which is it looked -- you know, walmart, 100 billion shoppers. they're blange saying, listen, things aren't great. >> right. >> and i have to tell you, by this point in the recovery, i wanted to hear that things were getting better. >> you're like me. you're getting impatient and you're starting to doubt -- because i had a bullish call out there and now i'm wondering -- >> well, when i read that, sometimes you read and you really want to read him say, you know, people are starting to buy big-box this and that. >> right. >> no! it's like they're buying food. i would never go against walmart as a tell in the economy because they're too darn good and i like to see walmart, as much as i

love the company, i'd love to see it do nothing or go down, because then target and best buy will go up. what that says is, look, things are feeling better, people are shopping in other places. the action in target versus walmart is very interesting this week. >> pepsi and accenture. >> pepsi, word has come out about the merger between the companies and it's fabulous. the ceo is going to fool everyone. all the nay sayers are focused on gatorade and are wrong. accenture, a lot of people thought that was a bad number. 2 upgrades. the out sourcing gain is better than ever. >> everyone wants into it. >> with the labor number today, we'd rather hire people for call centers anywhere but here. >> is that a move for weakness because they can't sell the product or because there's actually opportunity there? >> again, i think people care -- there are other outsources -- all people care about is not top line. they just want bottom line to be better. we -- if you were president obama, you would like to hear they went top-line better. of course, the only way to make

bottom-line better in this environment is fire. outsourcing. >> okay. have a good weekend. thank you very much. more of jim on "mad money" tonight at 6:00 p.m. and 11:00 p.m. on cnbc. he stormed the magic kingdom but lost the bid for disney. will he be able to climb 30 rock? we'll have the answer when "street signs" returns. and a quick reminder, all the recommendations expressed by jim cramer are solely his and are not the opinions of cnbc and may have been previously disseminated by him. before acting on a recommendation, consider its suitability for your circumstances and consider seeking advice from your own financial adviser.

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market's up, as you saw right there, but here's one of the puzzlers of the day, comcast and gm down on a possible deal to sell off nbc universal. are there any winners here? david faber, he's a winner. he's here with a special guest. david? >> thanks a lot, steve. of course, we are following that closely, and i'm happy to say i now have jessica reese cohen with me, longtime media,

entertainment analyst now at bank of america, merrill lynch. good afternoon, jessica. >> good afternoon. >> thanks for being here. you know, you wrote a report this morning called "scale without breaking the bank." let's start out with comcast here. given the structure that i've been reporting, at least, that we believe they are working with at this point, do you think under that structure this would be a good deal for comcast? >> yes, absolutely. well, we're always leery of combinations. you never know how they're work out. the structure of the deal is very typical comcasters would say comcastic. it's erie ve creative, a bold move on their part, but essentially, they would, as you have obviously broken the story, and as we understand it they would put up anywhere from $4 billion to $6 billion in cash, no stock, and take control of nbc universal. having said that, we believe that ge and azenzi would be getting a fair price because it is a very clever structure. >> yeah. >> so everybody benefits in this

case. >> you know, $30 billion is the number i'm hearing everybody is working with as a value for nbc universal. you feel that that is a reasonable valuation? >> yeah. yes, according to our analysis, we did the range as a report of $25 to $30 billion. $25 to $30 billion makes sense. when you start getting above $30 billion, it gets a little uncomfortable from the comcast perspective. >> why is that? >> it really gets to be too rich. then you start to play with the numbers little too much in favor of the sellers. >> now, do you understand from your perspective why it is gm might want to do a deal? let's assume that ge has made a decision -- nbc universal is not a core asset, and they want to divest themselves of it in some form, with this ownership. do you think this might make the most sense to deliver them value? >> i don't get the sense that there are a rush of buyers coming to the door. so, it doesn't feel like this is a huge auction with lots and lots of bidders and lots of interested parties.

so from that point, i think it's a tough sale in this environment, and an ipo -- you know, many assets within the group are working, and i'll get back to that in a second, but you know, the value that concept is placing on this is higher than many media companies are trading right now. so, i think it does make sense. obviously, the core of nbc universal has become the cable network group. >> right. >> comprised of 60% of ebitda. and nbc's done an amazing job, they really have. the ratings have grown over the last three years, compounded 8% when the industry's been up 3%, and you guys at cnbc have more than done your share because your ratings are up 11% compounded. >> all right. >> so, it's -- you know, it's very, very deserved. very attractive assets, good secular growth prospect. >> jessica, the contributed assets that comcast would use here, though, seem to be coming in at a fairly high valuation themselves. i know you have $630 million in possible ebitda at those content

assets in 2010, which is a number i haven't seen. it seems quite high. but am i wrong in assuming that they seem to be getting a pretty premium valuation on their own cable network? >> that's why it was creative on their part. you'd never see that number within comcast numbers. there's roughly $400 million of ebitda in the content group, which are things like e! and style. and the cable network. so you never really see those numbers. so the $630 million are the comcast -- they're, you know, i wouldn't put them in the top tier of cable network. >> right. >> under nbc universal management, our guess is there probably would be higher cash flow, but yes, we gave a nine to ten multiple to those cable networks. i think there is some good growth under better management and there can be increased distribution. >> okay. final question, real quick -- if comcast doesn't do this deal, does its stock go up or down? >> the cat's out of the bag.

it's clear they want content assets. this is a very clever deal. and historically, when comcast has made an acquisition, from the time they announce it until the time they close, the stock tends to be flattish. if they don't get this deal, then i think that investors are going to wait for the next potential deal to come. >> all right. jessica, we have to leave it there. thank you for joining us, jessica reif cohen of bank of america, merrill lynch. as you know, dines talk to many analysts, but she has still and has always been the best. >> if content is out there to be king, why would this add any synergies when the shareholders hated the disney deal because they didn't see any synergies there? >> why are there synergies here? >> would there be -- didn't we hate the disney deal with comcast because -- >> yes. in this case, disney was a very different proposition. comcast surprised shareholders with this unsolicited bid that did comprise a good deal of stock, was going to be potentially dilutive. in this case, as i think jessica cohen just pointed out, the deal

structure, if it were to happen -- and of course, we should point out, this is far from a done deal -- >> got you. >> nonetheless, if it did happen, it does give them an opportunity to control these content assets in a way that really doesn't involve the equity or taking on enormous amounts of debt, maintaining their investment-grade rating. i get why it might be seen as a positive from comcast shareholders. >> and is this the fear that the content goes from the cable wire over the internet and this backs them up on that? >> brian robertson, for whatever reason, strategically, been interested in content. there is the thing over the top that is a concern in the cable industry. at some point you're going to get all your programming on demand on broadband. >> i have broadband. >> the cable company does deliver your broadband as well. but if they it take out one of your pipes, chances are your average bill is going to go down. and so that is a concern, perhaps if you have content, you can then at least leverage that. that's a key consideration here. >> thank you very much.

great reporting on this, as usual. up next on "street signs," stocks shrug off the jobs data. does that mean the coast is clear to resume the rally? starting monday on "squawk on the street," five days and five stars. each morning we're talking to the best of the best. the fund managers that are making big money while the rest of the pack flounders. tech, treasuries, health care, small cap, large cap, and beyond. if you can name it, we're talking about how it can make you money. watch all next week, "squawk on the street," 9:00 a.m. to 11:00 a.m. eastern. esesesesesesesesess

lousy jobs, and the market is up. we've been talking about what the unemployment rate means for the bond market, but what are equity traders seeing out there. thanks, guys. why the change of heart by the market today? we'll start with peter? >> hello, steve. i would say yesterday's market

actually, when we saw the dow down 200, was a bit of a precursor to the number that came out this morning. in other words, i think the market was kind of expecting some disappointment. so today, though the futures were down sharply early, we have rebounded partially as a result of some recovery in the nasdaq, but we're still underperforming relative to the dow. partially as a result of some upgrades in the large cap tech space. and partially as a result of the fact that the market was not all that convinced we were going to be surprised to the upside. which is why we saw six out of the last seven trading sessions down and on light volume with the exception of yesterday, which was increased volume. >> terry, it was priced in. where do we go from here? >> i tend to agree with peter on that point. but as well as we spoke this morning, we expected not the straight down, and the market never does exactly what people are anticipating it to do. i expect a snap-back rally. i would expect selling into the close. i think this market needs to set a pattern in the next couple of days that will be crucial.

they tested the levels in the s&p 500 which were very important. it looks to me like they're going to retest those at a minimum. i think the onnous is on the downside with the s&p earnings running ahead of 2010 earnings capability. >> terry, do you have a feeling for how low is low in this market right now? >> actually, i'm looking, if it breaks 9200 on a closing basis in my view, you're looking at 8400. i'm looking at a more severe down than most people are looking at. >> terry, i'm sorry we brought you on on a friday afternoon. what do you think, peter? >> i think it's likely we do test to the downside, steve. i'm not looking at 8400. i think part of the reason for that is because between now and the beginning of the earning season, i think we're going to trade in a fairly tight band. because what supported this market thus far has been earnings. however they're re-engineered, and you spoke to cramer earlier, it's all about outsourcing, it's

about improving efficiencies. and s&p 500 companies are all about doing that right now. that should support the market. >> that's good. on that note, we'll leave it right there. thank you very much, peter and terry. we have a live picture right now of air force one landing from copenhagen. at andrews air force base. the president went over there to lobby, unsuckfully, we know now, for chicago. landing at andrews air force base. we'll be right back. tdd#: 1-800-345-2550

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